Global Butadiene Prices Recover Due to Rising Demand From the Downstream Industries
- 20-Jan-2023 5:31 PM
- Journalist: Li Hua
The global Butadiene market was depressed in 2022 amid economic headwinds, although during January 2023, its market started to rebound. The primary factor for the Butadiene price increase is the inflationary pressure, stable natural gas prices, and inadequate inventory level coupled with improving demand from the end-user.
According to the data, Butadiene prices steeply recovered in the European market due to a decline in inventory level, while the procurements increased after the holidays. Meanwhile, natural gas prices have stabilized in the region, resulting in the soft production cost of Butadiene. On the other hand, demand from the downstream synthetic rubber, polymer, and plastic industries has remained constant in early assessment in 2023. Although, procurements have improved in the wake of the expected rise in consumption rates during the coming weeks. Hence, as a result, prices of Butadiene FD Hamburg were offered at USD 640/MT on 13th January 2023.
Similarly, Butadiene prices have increased by USD 41/MT in the Chinese market as destocking ends this week. The inquiries from the downstream synthetic rubber, polymer, and other competitive industries have also accelerated and strengthened Butadiene’s market fundamental in China’s domestic market. In addition, market participants speculated that the imports from the Asia Pacific region are expected to turn costly on the back of improved pricing sentiment in the respective markets, resulting in costly imports on the Chinese shores.
Furthermore, in the USA Butadiene market has stabilized, and the prices have undergone minor fluctuation. Additionally, the supply of goods was adequate in the market, while the procurement from downstream was based on demand. Moreover, the manufacturers have slightly revised their price quotations to maintain their profit margins. As a result, prices of Butadiene were assessed at USD 1383/MT with a weekly increment of USD 5/MT during the same time frame.
According to the ChemAnalyst estimation, “Global Butadiene prices are expected to follow the uptrend in the forthcoming weeks due to the further expectation of improving demand from the downstream synthetic rubber and polymer industries.”